Grant PUD commissioners are considering a staff proposal to create new electric rate classes for data centers in 2027 and explore combining some existing rate classes in an ongoing effort to protect core customers from rising costs pushed by the utility's most energy-intense customers.
The proposed 2027 rates package includes keeping core customers -- residential, small business/general service customers -- on the same rate trajectory as prior years, with a 3.5% increase to keep up with general inflationary pressures, the Washington State PUD said.
Other large power-using customers would see higher rate increases to recover costs and provide a social benefit to core customers.
According to the proposal for 2027, Tier 1 customers, which would include Rate 7 - Large General Service, Rate 14 - Industrial, Rate 15 – Large Industrial, Rate16 – Ag Industrial, would see an average increase of 9.5%. Tier 2, which would include Rate 17 – Evolving Industry, Rate 19 Commercial EV Charging, Rate 20 – High Density Compute, Rate 21 – Large High-Density Compute, and Rate 85 – Ag Boiler, would see an average increase of 12.5%.
The latest cost-of-service analysis shows annual rate increases are needed through 2036 to ensure the utility covers its costs to provide service to all customers.
Staff analysts briefed commissioners at their Sept. 15, 2026 workshop.
Cost drivers
The proposed rate increases are driven by:
• Grant County's increasing demand for electricity, which has grown beyond what Grant PUD's Columbia River dams, Priest Rapids and Wanapum, can fully supply. Needed investments in solar power, geothermal exploration, and continued analysis of modern nuclear power are also cost drivers for Tier 1 and Tier 2 customers. The energy generated by these clean renewables is more costly than Grant PUD's own hydropower.
• A new, commission-driven "unbundled" rate-setting policy that gives "core customers" – residential, irrigation and small- and medium-sized businesses – priority access to the low-cost power from Grant PUD's dams. The utility's largest customers share in any low-cost hydropower surplus to core customers' needs.
• Reduced opportunities to sell power to wholesale buyers outside Grant County. This revenue has helped keep rates lower here at home.
• Greater assurance, through the rate-setting policy – that the utility's largest, most energy-intense customers driving Grant County's increase in energy demand are paying for the more costly power and the infrastructure to serve them.
Proposed Rates Remain Highly Competitive
The proposed rates for 2027 remain highly competitive. Grant PUD's rates will remain less than half the state and national averages for residential and commercial sectors, and for industrial customers about half of the national and a third below the state average.
The 2027 rates are expected to take effect April 1. All of the staff's proposed rate changes require prior commission approval. Public comment on the proposed rates is now open. A public meeting on the rate trajectory and cost-of-service analysis is planned for Nov. 10.
The public-comment period will end in November, with a commission vote on the rate proposal planned for Dec. 15.
